EX-12.01 3 dex1201.htm CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES Consolidated Ratio of Earnings to Fixed Charges

Exhibit 12.01

ORACLE CORPORATION

Consolidated Ratio of Earnings to Fixed Charges

(Unaudited)

 

     Year Ended May 31,  

(Dollars in millions)

        2010            2009            2008            2007            2006      

Earnings(1)

              

Income before provision for income taxes

    $ 8,243    $ 7,834    $ 7,834    $ 5,986    $ 4,810   

Add: Noncontrolling interests

      95      84      60      71      41   

Add: Fixed charges

      808      685      454      380      205   

Less: Equity in earnings

      —        —        —        —        (14 ) 
                                    

Total earnings

    $ 9,146    $ 8,603    $ 8,348    $ 6,437    $ 5,042   
                                    

Fixed Charges(2)

               

Interest expense

    $ 754    $ 630    $ 394    $ 343    $ 169   

Estimate of interest in rent expense

      54      55      60      37      36   
                                    

Total fixed charges

    $ 808    $ 685    $ 454    $ 380    $ 205   
                                    

Ratio of earnings to fixed charges

      11x      13x      18x      17x      25x   
                                    

 

(1)

The term “earnings” means the amounts resulting from the following: (a) our income before provision for income taxes, plus (b) the noncontrolling interests in the net income of our majority owned subsidiaries, plus (c) our fixed charges, less (d) our share of our equity investee’s income before provision for income taxes.

 

(2)

The term “fixed charges” means the amounts resulting from the following: (a) our interest expensed, plus (b) our estimate of the interest component of rent expense.

We do not report any shares of preferred stock outstanding in our consolidated financial statements because our outstanding preferred stock is owned by one or more of our wholly-owned subsidiaries. Our ratio of earnings to combined fixed charges and preferred dividends for any given period is equivalent to our ratio of earnings to fixed charges.